The correct answer is: A. Selling expenses
Selling expenses are the costs incurred in selling a product or service. They include costs such as advertising, sales commissions, and marketing. Selling expenses are necessary to create demand for a product or service and to persuade customers to buy it.
Distribution expenses are the costs incurred in getting a product or service to the customer. They include costs such as warehousing, transportation, and order processing. Distribution expenses are necessary to make a product or service available to customers.
Both selling expenses and distribution expenses are necessary to sell a product or service. However, only selling expenses are incurred to increase the demand for a product. Distribution expenses are incurred to make a product or service available to customers, but they do not directly increase demand.
Here are some examples of selling expenses:
- Advertising
- Sales commissions
- Marketing
- Trade shows
- Sales training
- Customer service
Here are some examples of distribution expenses:
- Warehousing
- Transportation
- Order processing
- Inventory management
- Customer returns
I hope this helps! Let me know if you have any other questions.